Entertainment chain HMV is projecting fiscal year profits will meet high-end market expectations, as annual and quarterly sales saw encouraging gains.
The retailer said that like-for-like sales across its fleet of stores in the UK and Ireland were up 4.3 per cent for the sixteen weeks ended April 25, resulting in an annual like-for-like sales rise of 1.9 per cent.
The group said that “despite challenging conditions”, pre-tax profits would be between £50m-£63 million, and therefore sitting at the upper end of market expectations.
“This has been driven by strong trading in HMV UK & Ireland, which continues to benefit from initiatives to transform the business, and from maximising the opportunities arising from competitors exiting the market,” said HMV CEO Simon Fox.
“We still have much to do, but I remain confident that the Group’s transformation plan remains on track to increase efficiency, revitalise our core business and establish new channels to market,” he added.
The retailer expects net debt will be at around £10m, due to the firm’s “strong balance sheet and good cash”.
Preliminary results for the 52 weeks ended 25 April 2009 will take place on June 30.